Research On The Long Term Performance Of Merger For The Listed Companies

In the historical view of the M&A wave, M&A is often associated with reform and innovation of technology, restructuring and policy changes of the industry as well as changes in the economic situation, etc. In this context, for the individual companies,M&A is a means to achieve corporate strategic development goals. Successful M&A can well promote enterprise development and growth, and even social economic.However, from three China M & A wave, the failure of merger cases is in the majority.At present, China is at an important period of economic restructuring, and therefore M&A function of reconfiguring resources come to be more obvious, and then more frequent M&A activity. On the other hand, from the perspective of global business development process, most of the big companies are relying on M&A to develop,rather than internal accumulation. So, the M&A will be inevitable choice in the way to grow our business and devote into the world economic stage. So, it became realistic problems that how enterprises rapidly grow and develop using M&A and how the government guides and supervise M&A.In the past paper of M&A, the study is generally concentrate on motive and performance of M&A. In our research, we focus on long term performance of M&A of China listed companies, and then analysis of factors that influence long term performance of China listed companies in M&A based on accounting for Chinese national conditions and the institutional environment. Hoping to provide some theoretical help for the government and enterprises, and improve Chinese M&A systems and theory, and improve the efficiency of Chinese M&A.Based on the revised BHAR, and further verified by CTPA, we study 197companies’ shareholder wealth abnormal returns within one year after M&A. We find that the long term abnormal returns are negative. Although statistical results are not significant, we seem to be able to find that M&A cannot bring wealth to shareholder,and even may result in a reduction of wealth.